Dental Capitation Compensation Question

We do a doctor’s salary pool that is based on collections. The only problem is if you post production and collections to a RDH. We split the week so we just split the hygiene collections 50/50. Remember the owner takes collections and then pays overhead, then pays himself. By the way I would gladly pay a “worker dentist employee’ his production if I did all the treatment plans and financial arrangements. I have heard of this being done in various offices, with good success.

Not counting the cap checks is wrong in my opinion. I’d be looking to change that real quick.

I agree paying on production is a much easier task, however, with software systems today, why do folks seem to have problems tracking collections on specific production?

We get monthly reports from many of our practices showing gross production, adjustments and collections, by provider, including hygiene. Now, allocating the capitation checks in those few practices that still participate can be challenging I will admit.

This post first appeared on DentalTown.

Send your questions to Tim Lott, CPA, CVA at

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